Correlation Between Copa Holdings and SOUTHERN
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By analyzing existing cross correlation between Copa Holdings SA and SOUTHERN PER CORP, you can compare the effects of market volatilities on Copa Holdings and SOUTHERN and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Copa Holdings with a short position of SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Copa Holdings and SOUTHERN.
Diversification Opportunities for Copa Holdings and SOUTHERN
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Copa and SOUTHERN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Copa Holdings SA and SOUTHERN PER CORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN PER P and Copa Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Copa Holdings SA are associated (or correlated) with SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN PER P has no effect on the direction of Copa Holdings i.e., Copa Holdings and SOUTHERN go up and down completely randomly.
Pair Corralation between Copa Holdings and SOUTHERN
Considering the 90-day investment horizon Copa Holdings SA is expected to generate 1.64 times more return on investment than SOUTHERN. However, Copa Holdings is 1.64 times more volatile than SOUTHERN PER CORP. It trades about -0.07 of its potential returns per unit of risk. SOUTHERN PER CORP is currently generating about -0.24 per unit of risk. If you would invest 9,636 in Copa Holdings SA on September 4, 2024 and sell it today you would lose (542.00) from holding Copa Holdings SA or give up 5.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Copa Holdings SA vs. SOUTHERN PER CORP
Performance |
| Timeline |
| Copa Holdings SA |
| SOUTHERN PER P |
Copa Holdings and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Copa Holdings and SOUTHERN
The main advantage of trading using opposite Copa Holdings and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Copa Holdings position performs unexpectedly, SOUTHERN can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Copa Holdings vs. Delta Air Lines | Copa Holdings vs. United Airlines Holdings | Copa Holdings vs. Frontier Group Holdings |
| SOUTHERN vs. The Travelers Companies | SOUTHERN vs. GE Aerospace | SOUTHERN vs. Walmart | SOUTHERN vs. Pfizer Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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